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MUSCAT, May 26 (Reuters) - Oman's parliament voted on Thursday to sharply raise taxes on the petrochemical industry, non-oil natural resources and liquefied natural gas companies in a drive to address a budget deficit.
The legislation, which is subject to approval by the sultan, raises the tax rate of LNG companies to 55 percent from 15 percent. Tax rates for petrochemical companies and on exports of non-oil natural resources, both currently at 12 percent, would rise to 35 percent.
Both houses of the Council of Oman, one elected and one appointed, voted in favour of the hikes, which Sultan Qaboos bin Said had sent over for review.
Oman is imposing a series of austerity measures after it posted a budget deficit of about 4.5 billion rials ($11.7 billion) last year. Gasoline and diesel price subsidies have been cut and similar cuts are planned for electricity and liquid petroleum gas.
(Reporting by Fatma Alarimi; Writing by Katie Paul; editing by John Stonestreet) ((Katie.Paul@thomsonreuters.com;))
The legislation, which is subject to approval by the sultan, raises the tax rate of LNG companies to 55 percent from 15 percent. Tax rates for petrochemical companies and on exports of non-oil natural resources, both currently at 12 percent, would rise to 35 percent.
Both houses of the Council of Oman, one elected and one appointed, voted in favour of the hikes, which Sultan Qaboos bin Said had sent over for review.
Oman is imposing a series of austerity measures after it posted a budget deficit of about 4.5 billion rials ($11.7 billion) last year. Gasoline and diesel price subsidies have been cut and similar cuts are planned for electricity and liquid petroleum gas.
(Reporting by Fatma Alarimi; Writing by Katie Paul; editing by John Stonestreet) ((Katie.Paul@thomsonreuters.com;))
